Bitcoin is trading above the $56,200 support against the US Dollar. BTC must clear $58,500 to start a major increase in the coming sessions.
Bitcoin is struggling to gain pace above the $58,000 and $58,500 levels. The price is still trading above $57,000 and the 100 hourly simple moving average. There is a major contracting triangle forming with resistance near $58,200 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must clear the $58,500 resistance to start a steady increase in the near term.Bitcoin Price is Showing Bullish Signs
Bitcoin price corrected lower below the $57,000 support level. However, BTC remained stable above the $56,200 support level and the 100 hourly simple moving average.
The recent low was near $56,555 and the price is now moving higher. It broke the $57,000 resistance zone. There was a break above the 23.6% Fib retracement level of the recent decline from the $59,230 swing high to $56,555 low.
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The first major resistance is near the $58,200 level. There is also a major contracting triangle forming with resistance near $58,200 on the hourly chart of the BTC/USD pair.
A clear break above the $58,200 resistance zone could open the doors for more upsides. The next key resistance is near the $58,500 level, above which the bulls could aim a test of $60,000. Any more gains might push the price towards $61,200.
Fresh Drop In BTC?
If bitcoin fails to clear the $58,500 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $57,000 level.
The first major support is now forming near the $56,200 level and the 100 hourly SMA. A downside break below the $56,200 support may perhaps push the price towards $55,500. Any more losses might lead the price towards $55,000.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the 50 level.
Major Support Levels – $57,000, followed by $56,200.
Major Resistance Levels – $58,000, $58,500 and $60,000.
